Financial giant Deutsche Bank’s asset management arm is reportedly considering making investments in the crypto industry to speed up its growth after global markets fell last year.
According to a new Bloomberg report, the German banking giant’s DWS Group is already in discussions to invest in two Germany-based crypto firms.
Sources told Bloomberg that the DWS Group head, CEO Stefan Hoops, is in negotiations to buy a minority stake in Deutsche Digital Assets, a crypto asset manager.
He is also looking to invest in Tradias, a digital assets trading firm owned by Bankhaus Scheich, a market maker in securities and digital assets.
Per the report, Hoops said during an earnings call last week that the current downswing in crypto markets could present DWS with “interesting opportunities” for investments.
Hoops also said during the call that DWS has “started to assess strategic partners and commence due diligence on potential targets,” including digital assets.
According to Bloomberg, revamping growth is a primary focus for DWS after reporting outflows of $21.5 billion in 2022 and a $114.8 billion drop in managed assets.
Public representatives from DWS, Tradias and Galaxy made no official comments on the matter.
Several banking and asset management giants have made forays into the crypto market in the last several months.
Last November, BlackRock, the largest asset manager in the world, took over the management of portion of stablecoin issuer Circle’s USDC reserves. In the same month, American banking titan JPMorgan filed a trademark for a new crypto wallet with the ability to exchange and transfer digital currencies.
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